Sale of hygiene and beauty product drops up to 15%

Sales by manufacturers of toiletries, perfumes and cosmetics fell 10% to 15% in March on an annual basis due to closed stores and lower activity by retailers in several states that have enacted quarantines to curb the proliferation of covid-19. The estimate is from the Brazilian Association of the Personal Hygiene and Cosmetics Industry (ABIHPEC). "The quarter data are still in the consolidation phase, but the situation is not worse because pharmacies and supermarkets are open," said João Carlos Basilio, Abihpec's chief executive. In January, the entity estimated a growth of 1.54% in sales for 2020, already discounting inflation forecast for the period. The current scenario will negatively impact performance, but as there is no predictability for the end of the crisis caused by the pandemic, it is premature to predict the negative impact. In 2019, sales had real growth of 0.69%. It brings together companies such as Natura &Co, Boticário Group, Unilever, L'Oréal, Colgate-Palmolive, Procter & Gamble, Coty and Johnson & Johnson. Franchise channels and direct sales are more representative in sales of cosmetics and perfumes, while supermarkets, pharmacies and perfumeries have greater weight in personal care items. Basilio said that although part of the direct selling activity is digital, "social activity is paralyzed and this has consequences." "The consumption of cosmetics falls because people are at home." With lower demand for other products, manufacturers are focusing on producing gel alcohol, liquid soaps and bar to be sold and donated to underserved communities, hospitals and nursing homes. Last week, Natura announced the production of 575,000 bottles of 70% alcohol for donation at the Cajamar (SP) plants, in partnership with Basf, Prakolar, Avery Dennison, Raízen, Trizy, Box Print, Gráfica 43 and All4labels. The Boticário Group also donated in March 216 tons of antiseptics and soaps. Other actions are being organized by Abihpec and the Brazilian Association of Industries of Biscuits, Pasta and Breads & Industrialized Cakes (Abimapi), such as the collection of R$ 3 million to provide financial support to 5,000 recyclable waste pickers who are part of a reverse logistics program of these industries. 30 tons of personal hygiene, perfumery and cosmetics will also be delivered to partner hospitals of the Abihpec Institute and professionals from recycling cooperatives.